Sep 22, 2020
by Michael Davidow
ACA Compliance Solution Services, Inc.
The stage is set for a renewed legal battle against the Affordable Care Act (ACA). The Supreme Court is scheduled to hear oral arguments in the case on November 10 — one week after the presidential election.
At the heart of the matter is whether the ACA can stand without the individual mandate for individuals to have health insurance. In 2017, Congress enacted the Tax Cuts and Jobs Act (TCJA), which reduced the tax penalty to $0 for not obtaining health insurance. This change, which became effective in 2019, effectively eliminated the ACA’s individual health insurance mandate.
In early 2018, a group of 20 states and two individuals brought a lawsuit. They argued that the entire ACA became invalid after the TCJA came into force since the individual mandate is essential to the ACA.
The outcome will have major implications for 20 million consumers covered under the ACA, insurers, and hospitals. The fight is coming to a head just when the COVID-19 has pushed healthcare to the forefront. It remains to be seen whether the Supreme Court will finally uphold the ACA, consolidating the gains that our health care system has made under the law. However, the ACA stands on shakier ground with the passing of Justice Ruth Bader Ginsburg and the possibility of the President appointing a conservative justice. A final ruling is not expected until the spring of 2021.
If the ACA is struck down will employers need to file their 2020 1094/1095 forms with the IRS? These filings are still due by January 31, 2021. The court won’t give their final ruling until the spring of 2021. So all filings will be due and all fines will be held up for those that don’t file in a timely manner.
If you have any questions or would like to discuss this issue further, contact ACA Compliance Solution Services (ACACSS) at 818-330-3900 or glenn@acacss.com.
